What Adidas Knew About Kanye | The Daily

Intro

In this episode of “The Daily,” investigative reporter Megan Tulley uncovers the complex and tumultuous partnership between Adidas and Kanye West. What seemed like a straightforward collaboration turned out to be a black box of financial intricacies and controversial behavior. As Adidas tries to catch up in the hyper-competitive market, they bring in Kanye West for his cultural influence. However, his erratic behavior and offensive remarks put the partnership at risk. This episode delves into the behind-the-scenes drama and the consequences faced by both Adidas and Kanye.

Main Takeaways

Adidas and Kanye West Partnership

• Adidas terminated its partnership with Kanye West due to his anti-Semitic remarks.
• Investigative reporter Megan Tulley found that the partnership was far more complicated than it seemed.
• The collaboration was a black box for years, and there was a lot that was unknown about the financial details.
• Adidas was feeling quite stalled in the hyper-competitive market since 2013.

Kanye West’s Cultural Influence

• Kanye West was brought in by Adidas to help them catch up in the market, and his cultural influence was a major factor.
• Kanye had a burning desire for more creativity, power, and influence and channeled it into fashion.
• Adidas offered Kanye a generous contract to be a genuine co-creator of shoes and apparel, with a 15% royalty and at least $3 million a year guaranteed.
• Adidas knew Kanye had a history of being dramatic and controversial but thought it could work in their favor to drive sales.

Kanye West’s Behavior and Controversial Statements

• Kanye’s behavior behind the scenes, such as forcing Adidas executives to watch pornography and drawing a swastika on a shoe design, caused concern and shock.
• Despite red flags, Adidas proceeded with the partnership due to Kanye’s creative genius.
• Kanye operates unlike anyone else they’ve ever worked with, brimming with ideas and obsessed with detail.
• Kanye’s success has been attributed to his creativity and collaboration with Adidas.

The Fallout and Future

• Adidas wants to go all in with Kanye West and is negotiating a new contract with a morals clause to protect themselves from his problematic behavior.
• Kanye’s Adidas deal includes financial incentives such as a 15% royalty of net sales, $15 million upfront, and company stock each year.
• Adidas did not invoke the morals clause during Kanye’s controversial statements about slavery and Hitler.
• Adidas releases the inventory for sale, and the shoes end up taking in about $437 million in sales through June, with royalties going to both parties.

Summary

The Complex Partnership Unveiled

Adidas and Kanye West’s partnership was far more intricate than it appeared on the surface. Investigative reporter Megan Tulley uncovers the undisclosed financial details and complexities that surrounded the collaboration. Adidas, feeling stagnant in the competitive market, sought Kanye’s cultural influence to revitalize their brand. However, the partnership was not without its challenges.

Kanye West: A Creative Genius with Controversial Behavior

Kanye West’s involvement in the partnership brought both creativity and controversy. While Adidas recognized his dramatic and controversial history, they believed it could work in their favor to drive sales. Kanye’s behavior behind the scenes, including shocking acts and offensive language, raised concerns among Adidas executives. Nevertheless, his creative genius and unmatched work ethic propelled the collaboration forward.

The Fallout and Future Prospects

As Kanye’s behavior became increasingly erratic, Adidas sought to protect themselves by negotiating a new contract with a morals clause. Despite controversies surrounding Kanye’s statements, Adidas did not invoke the morals clause and continued to release their collaborative inventory, resulting in significant sales. The partnership’s termination brought consequences for both parties, but there is speculation about a potential future deal between Adidas and Kanye.

Conclusion

The Adidas and Kanye West partnership was a rollercoaster ride of creativity, controversy, and financial intricacies. While Adidas capitalized on Kanye’s cultural influence and creativity, his erratic behavior and offensive remarks posed challenges. The fallout from the partnership’s termination highlighted the dependency and consequences faced by both Adidas and Kanye. Despite the controversies, the collaboration’s cultural impact and financial success cannot be denied. The future holds uncertainty, but the allure of another deal between Adidas and Kanye remains.